Directly from Vladimir Ribakov's Live Trading Room

We have two scenarios to look for here. Lets start off with the Bearish scenario, if we look to the Daily chart we can see that price is just breaking through the 1.59 area and looks to be creating a possible double top here. Yesterday ended with a beautiful Marabuzu candle and price right now is playing around the 200MA. What we want to see is a false break here that is price closes above 1.59 and then immediately closes back below 1.59 and creating some sort of Bearish candle pattern. Classically we want to see either a Engulfing pattern or an inverted Hammer. If we get this scenario with the cross down of the Stochastic indicator for extra confirmation that will be our sell signal and that should open the doors to 1.57 and possibly 1.5440. Pay attention how we have beautiful divergence on the all the indicators. The next scenario is a Bullish scenario and here we are looking for price to close , hold and retest the 1.59 but not close below. If we get this price action than that will be our buy signal and we will be aiming 1.61 and even 1.62

GBPUSD

GBPUSD trade setup for February 29, 2012

width=645

GBP/USD Pivot Points (Time Frame: 1 Day)

 Name  S3  S2  S1  Pivot  R1  R2  R3

 Classic
1.5835
1.5873
1.5915
1.5953
1.5995
1.6033
1.6075

 Fibonacci
1.5873
1.5904
1.5923
1.5953
1.5984
1.6003
1.6033

 Camarilla
1.5934
1.5941
1.5949
1.5953
1.5963
1.5971
1.5978

 Woodie's
-
1.5874
1.5916
1.5954
1.5996
1.6034
-

 DeMark's
-
-
1.6014
1.5963
1.5934
-
-